Legal Question in Bankruptcy in California

If I start a job after the 341 hearing but before everything is discharged in a chapter 7, would that bring any repercussions for my case?

I have had friends who filed and their attorneys told them they could start a new job the day after the 341.

--Thanks in advance


Asked on 5/15/11, 11:46 am

3 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

No. In fact, debtors are entitled to make a living. Congratulations on finding a job in this economic downturn.

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Answered on 5/15/11, 1:18 pm
Tony Carballo Carballo Law Offices

Here is a different answer (lawyers not always agree with each other!)... Schedules I and J which you filed with the petition is a projection of income (reasonably expected future income) and expenses. Therefore, the Schedules I and J you filed do not reflect the correct future or projected income in your case since you now have a job. One of the questions Trustees usually ask is if your financial situation has changed since filing. It has for you and you may be asked that question. If the new job provides a substantial net income after reasonable living expenses then the trustee/US Trustee's Office could move to dismiss your case for abuse. You would have a choice to convert to Chapter 13 at that point. I don't think this will happen but you have to be truthful at the 341 meeting and it might be that you are not going to be making that much money that will change anything. You need to consult with your lawyer on this. You are cetainly entitled to make a living and it is great you found a job but that job could disqualify you from Chapter 7. Again, make sure you consult with your own attorney on this rather than rely on this forum for advice. This is information and not legal advice.

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Answered on 5/15/11, 5:39 pm


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